WWF releases ‘green’ commodity-investing guide
The World Wildlife Fund has unveiled a new guide to responsible investing in 10 major commodities sectors, including seafood.
The 2050 Criteria: Guide to Responsible Investment in Agricultural, Forest, and Seafood Commodities report comes amid accelerating global interest, and controversy, around the financing of food and agricultural commodities. The2050 Criteria is designed as a field guide for mainstream investors, in particular banks, investors and financial analysts identify responsible companies and projects in the agricultural, forest and seafood industries.
The 2050 Criteria also provides “Key Performance Criteria” for identifying responsible practice, helping to mitigate the primary sources of environmental and social risk for investors in these sectors.
“Food security is the challenge of the 21st century. We absolutely need more investments in agriculture, not less,” says Joshua Levin of World Wildlife Fund. “Yet at the same time that allocation targets are rising, investors are awakening to a quagmire of material, reputational, and systemic risks. There is a clear need to untangle some of this complexity and provide clear and credible guidance for identifying responsible mainstream performers.”
By adopting the guidance in The 2050 Criteria, financiers will be able to manage critical business and reputational risks, reduce transaction costs and simplify decision making by aligning investment criteria with leading industry practice, contribute to improved risk-adjusted returns, and shape responsible practices on the ground in these high-impact sectors.
The guide was launched at the Global AgInvesting Asia conference in Singapore. The conference brought together hundreds of allocators, fund managers, and industry executives to discuss the burgeoning asset class of agriculture and its surrounding themes.